Net income

Supplies is the type of assets acquired by an organization that has a much shorter life than equipment.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Supplies. The type of assets acquired by an organization that has a much shorter life than equipment.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Pay period (payroll period) is a length of time used by an employer to calculate the amount of an employee's earnings. Pay periods can be daily, weekly, biweekly (once every 2 weeks), semimonthly (twice each month), monthly, quarterly, or annually.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Pay period (payroll period). A length of time used by an employer to calculate the amount of an employee's earnings. Pay periods can be daily, weekly, biweekly (once every 2 weeks), semimonthly (twice each month), monthly, quarterly, or annually.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Gross earnings (gross pay) is all earnings before any deductions.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Gross earnings (gross pay). All earnings before any deductions.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Banking day is any day that a bank is open to the public for business. Generally, a banking day will end at 2:00 or 3:00 p.m. local time. Banking business transacted after this time is usually considered to be the next day’s business. Saturdays, Sundays, and federal holidays are usually not considered banking days.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Banking day. Any day that a bank is open to the public for business. Generally, a banking day will end at 2:00 or 3:00 p.m. local time. Banking business transacted after this time is usually considered to be the next day’s business. Saturdays, Sundays, and federal holidays are usually not considered banking days.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Calendar quarter is a three-month, 13-week time period. Four calendar quarters occur during a calendar year that runs from January 1 through December 31. The first quarter is January through March, the second is April through June, the third is July through September, and the fourth is October through December.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Calendar quarter. A three-month, 13-week time period. Four calendar quarters occur during a calendar year that runs from January 1 through December 31. The first quarter is January through March, the second is April through June, the third is July through September, and the fourth is October through December.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Workweek is a 7-day (168-hour) period used to determine overtime hours for employees. A workweek can begin on any given day, but must end 7 days later.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Workweek. A 7-day (168-hour) period used to determine overtime hours for employees. A workweek can begin on any given day, but must end 7 days later.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Calendar year is a 1-year period beginning on January 1 and ending on December 31. In United States, employers must use a calendar year for payroll purposes, even if the employer uses a fiscal year for financial statements and for any other reason.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Calendar year. A 1-year period beginning on January 1 and ending on December 31. In United States, employers must use a calendar year for payroll purposes, even if the employer uses a fiscal year for financial statements and for any other reason.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Net pay is gross earnings, less deductions. Net pay, or take-home pay, is what the worker actually takes home.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Net pay. Gross earnings, less deductions. Net pay, or take-home pay, is what the worker actually takes home.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Payroll register is a multicolumn form that is used to record payroll data.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Payroll register. A multicolumn form that is used to record payroll data.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Individual employee earnings record is an accounting document that summarizes the total amount of wages paid and the deductions for the calendar year. It aids in preparing governmental reports. A new record is prepared for each employee each year.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Individual employee earnings record. An accounting document that summarizes the total amount of wages paid and the deductions for the calendar year. It aids in preparing governmental reports. A new record is prepared for each employee each year.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Experience rating (merit rating) is a rate assigned by an insurance company to determine the cost of insurance coverage. This rate is based on the physical difficulty of jobs within various industries and the history/cost of prior employee accident claims submitted.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Experience rating (merit rating). A rate assigned by an insurance company to determine the cost of insurance coverage. This rate is based on the physical difficulty of jobs within various industries and the history/cost of prior employee accident claims submitted.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Expanded accounting equation is Assets = Liabilities + Owner's Capital - Owner's Withdrawals + Revenue - Expenses.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Expanded accounting equation. Assets = Liabilities + Owner's Capital - Owner's Withdrawals + Revenue - Expenses.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Ending capital is Beginning Capital + Additional Investments + Net income - Owner's Withdrawals = Ending Capital. Or Beginning Capital + Additional Investments - Net loss - Owner's Withdrawals = Ending Capital

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Ending capital. Beginning Capital + Additional Investments + Net income - Owner's Withdrawals = Ending Capital. Or Beginning Capital + Additional Investments - Net loss - Owner's Withdrawals = Ending Capital

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Footing is the total of each side of a T account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Footing. The totals of each side of a T account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Ending balance is the difference between two footings in a T account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Ending balance. The difference between footings in a T account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Interim report is a fiscal statement that is prepared for a month, quarter, or some other portion of the fiscal year.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Interim report. A fiscal statement that is prepared for a month, quarter, or some other portion of the fiscal year.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Journalizing is the process of recording a transaction into the general journal.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Journalizing. The process of recording a transaction into the general journal.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Posting is the transferring, copying, or recording of information from a general journal to a ledger.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Posting. The transferring, copying, or recording of information from a general journal to a ledger.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Four-column account is a running balance account that records debits and credits and has a column for an ending balance (debit or credit). It replaces the standard two-column account we used earlier.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Four-column account. A running balance account that records debits and credits and has a column for an ending balance (debit or credit). It replaces the standard two-column account we used earlier.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Cross-referencing is adding to the PR column of the journal the account number of the ledger account that was upgraded from the general journal.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cross-referencing. Adding to the PR column of the journal the account number of the ledger account that was upgraded from the general journal.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Slide is the error that results in adding or deleting zeros in the writing of a number such as 79,200 instead of 7,920.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Slide. The error that results in adding or deleting zeros in the writing of a number such as 79,200 instead of 7,920.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Transposition is the accidental rearrangement of digits of a number such as 152 instead of 125.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Transposition. The accidental rearrangement of digits of a number such as 152 instead of 125.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Worksheet is a columnar device used by accountants to aid them in completing the accounting cycle -- often just referred to as spreadsheet. It is not a formal report.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Worksheet. A columnar device used by accountants to aid them in completing the accounting cycle -- often just referred to as spreadsheet. It is not a formal report.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Adjusting is the process of calculating the latest up-to-date balance of each account at the end of an accounting period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Adjusting. The process of calculating the latest up-to-date balance of each account at the end of an accounting period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Accrued salaries payable are salaries that are earned by employees but unpaid and unrecorded during the period (and thus need to be recorded by an adjustment) and will not come due for payment until the next accounting period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Accrued salaries payable. Salaries that are earned by employees but unpaid and unrecorded during the period (and thus need to be recorded by an adjustment) and will not come due for payment until the next accounting period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Adjusting journal entry is any journal entry that are needed in order to update specific ledger accounts to reflect correct balances at the end of an accounting period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Adjusting journal entry. Journal entries that are needed in order to update specific ledger accounts to reflect correct balances at the end of an accounting period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Permanent account (also known as real account). An account, such as Assets, Liabilities, and Owner's Capital, whose balances are carried over to the next accounting period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Permanent account (also known as real account). An account, such as Assets, Liabilities, and Owner's Capital, whose balances are carried over to the next accounting period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Temporary account (also known as nominal account) is an account whose balances at the end of an accounting period are not carried over to the next accounting period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Temporary account (also known as nominal account). An account whose balances at the end of an accounting period are not carried over to the next accounting period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Closing journal entry is a journal entry that is prepared to (a) reset all temporary accounts to a zero balance and (b) update Owner's Capital to a new balance.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Closing journal entry. A journal entry that is prepared to (a) reset all temporary accounts to a zero balance and (b) update Owner's Capital to a new balance.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Post-closing trial balance is the final step in the accounting cycle that lists only permanent accounts in the ledger and their balances after adjusting and closing entries have been posted.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Post-closing trial balance. The final step in the accounting cycle that lists only permanent accounts in the ledger and their balances after adjusting and closing entries have been posted.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Internal control system is procedures and methods to control an organization's assets as well as monitor its operations.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Internal control system. Procedures and methods to control an organization's assets as well as monitor its operations.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Signature card is a form signed by a bank customer that the bank uses to verify signature authenticity on all checks.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Signature card. A form signed by a bank customer that the bank uses to verify signature authenticity on all checks.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Deposit slip is a form provided by a bank for use in depositing money or checks into a checking account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Deposit slip. A form provided by a bank for use in depositing money or checks into a checking account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Endorsement is a payee's signature on a check. When endorsement is blank, a check could be further endorsed. When endorsement is executed (its field is full), this endorsement restricts further endorsement to only the person or organization named. When endorsement is restrictive, this endorsement restricts any further endorsement.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Endorsement. A payee's signature on a check. When endorsement is blank, a check could be further endorsed. When endorsement is executed (its field is full), this endorsement restricts further endorsement to only the person or organization named. When endorsement is restrictive, this endorsement restricts any further endorsement.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Drawer is a person who writes a check.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Drawer. A person who writes a check.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Drawee is a bank that the drawer has an account with.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Drawee. A bank that the drawer has an account with.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Payee is the person or organization to whom the check is payable.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Payee. The person or organization to whom the check is payable.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Cancelled check is a check that has been processed by a bank and is no longer negotiable.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cancelled check. A check that has been processed by a bank and is no longer negotiable.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Bank reconciliation is the process of reconciling the checkbook balance with the bank balance given on the bank statement.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bank reconciliation. The process of reconciling the checkbook balance with the bank balance given on the bank statement.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Bank statement is a financial report sent by a bank to a customer indicating the previous balance, ATM transactions, nonsufficient funds, individual checks processed, individual deposits received, service charges, and ending bank balance.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bank statement. A financial report sent by a bank to a customer indicating the previous balance, ATM transactions, nonsufficient funds, individual checks processed, individual deposits received, service charges, and ending bank balance.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Deposit in transit is a [[deposit that was made by customers of a bank but did not reach, or was not processed by the bank before the preparation of the bank statement.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Deposit in transit. Deposits that were made by customers of a bank but did not reach, or were not processed by the bank before the preparation of the bank statement.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Outstanding check is a check written by an organization or person that were not received or not processed by the bank before the preparation of the bank statement.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Outstanding check. A check written by an organization or person that were not received or not processed by the bank before the preparation of the bank statement.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Nonsufficient funds (NSF) is notation indicating that a check has been written on an account that lacks sufficient funds to back it up.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Nonsufficient funds (NSF). Notation indicating that a check has been written on an account that lacks sufficient funds to back it up.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Debit memorandum is decrease in depositor's balance.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Debit memorandum. Decrease in depositor's balance.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Credit memorandum is increase in depositor's balance.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Credit memorandum. Increase in depositor's balance.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Electronic funds transfer is an electronic system that transfers funds without the use of paper checks.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Electronic funds transfer. An electronic system that transfers funds without the use of paper checks.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

ATM (automatic teller machine) is machine that allows for depositing, withdrawal, and advanced banking transactions.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

ATM (automatic teller machine). Machine that allows for depositing, withdrawal, and advanced banking transactions.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Phishing is one or more of fake emails that attempt to obtain information about online banking customers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Phishing. Fake emails that attempt to obtain information about online banking customers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Check truncation (check safekeeping) is procedure whereby checks are not returned to the drawer with the bank statement but are instead kept at the bank for a certain amount of time before being first transferred to image and then destroyed.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Check truncation (check safekeeping). Procedure whereby checks are not returned to the drawer with the bank statement but are instead kept at the bank for a certain amount of time before being first transferred to image and then destroyed.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Petty cash fund is fund (source) that allows payment of small amounts without the writing of checks.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Petty cash fund. Fund (source) that allows payment of small amounts without the writing of checks.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Petty cash voucher is a petty cash form to be completed when money is taken out of petty cash.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Petty cash voucher. A petty cash form to be completed when money is taken out of petty cash.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Auxiliary petty cash record is a supplementary record for summarizing petty cash information.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Auxiliary petty cash record. A supplementary record for summarizing petty cash information.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Cash Short and Over is the account that records cash shortages and overages. If the ending balance is a debit.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cash Short and Over. The account that records cash shortages and overages. If the ending balance is a debit.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Retailer is a merchant who buy goods from wholesalers for resale to customers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Retailer. A merchant who buy goods from wholesalers for resale to customers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Merchandise is goods brought into a store for resale to customers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Merchandise. Goods brought into a store for resale to customers.

• Sales Returns and Allowances account (SRA account). A contra-revenue account that records price adjustments and allowances granted on merchandise that is defective and has been returned.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Sales Returns and Allowances account (SRA account). A contra-revenue account that records price adjustments and allowances granted on merchandise that is defective and has been returned.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Sales discount is amount a customer is allowed to deduct from the bill total for paying a bill during the discount period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Sales discount. Amount a customer is allowed to deduct from the bill total for paying a bill during the discount period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Discount period is a period shorter than the credit period when a discount is available to encourage early payment of bills.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Discount period. A period shorter than the credit period when a discount is available to encourage early payment of bills.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Credit period is length of time allowed for payment of goods sold on account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Credit period. Length of time allowed for payment of goods sold on account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Sales Discount account is a contra-revenue account that records cash discounts granted to customers for payments made within a specific period of time.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Sales Discount account. A contra-revenue account that records cash discounts granted to customers for payments made within a specific period of time.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Net sales is gross sales less sales returns and allowances less sales discounts.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Net sales. Gross sales less sales returns and allowances less sales discounts.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Gross sales is the revenue earned from sale of merchandise to customers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Gross sales. The revenue earned from sale of merchandise to customers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Sales Tax Payable account is an account in the general ledger that accumulates the amount of sales tax owed. It has a credit balance.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Sales Tax Payable account. An account in the general ledger that accumulates the amount of sales tax owed. It has a credit balance.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Wholesaler is a merchant who buys goods from suppliers and manufacturers for sale to retailers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Wholesaler. A merchant who buys goods from suppliers and manufacturers for sale to retailers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Sales invoice is a bill sent to customer(s) reflecting a credit sale.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Sales invoice. A bill sent to customer(s) reflecting a credit sale.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Accounts receivable subsidiary ledger is a book or file that contains the individual records, in alphabetical order, of amounts owed by various credit customers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Accounts receivable subsidiary ledger. A book or file that contains the individual records, in alphabetical order, of amounts owed by various credit customers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Subsidiary ledger is a ledger that contains accounts of a single type. Example: The accounts receivable subsidiary ledger records all credit customers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Subsidiary ledger. A ledger that contains accounts of a single type. Example: The accounts receivable subsidiary ledger records all credit customers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Accounts Receivable account (Accounts Receivable controlling account) is the Accounts Receivable account in the general ledger, after postings are complete, shows a firm the total amount of money owed to it. This figure is broken down in the accounts receivable subsidiary ledger, where it indicates specifically who owes the money.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Accounts Receivable account (Accounts Receivable controlling account). The Accounts Receivable account in the general ledger, after postings are complete, shows a firm the total amount of money owed to it. This figure is broken down in the accounts receivable subsidiary ledger, where it indicates specifically who owes the money.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Credit memorandum is a piece of paper sent by the seller to a customer who has returned merchandise previously purchased on credit. The credit memorandum indicates to the customer that the seller is reducing the amount owed by the customer.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Credit memorandum. A piece of paper sent by the seller to a customer who has returned merchandise previously purchased on credit. The credit memorandum indicates to the customer that the seller is reducing the amount owed by the customer.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Schedule of accounts receivable is a list of the customers, in alphabetical order, that have an outstanding balance in the accounts receivable subsidiary ledger. This total should be equal to the balance of the Accounts Receivable controlling account in the general ledger at the end of the month.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Schedule of accounts receivable. A list of the customers, in alphabetical order, that have an outstanding balance in the accounts receivable subsidiary ledger. This total should be equal to the balance of the Accounts Receivable controlling account in the general ledger at the end of the month.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Purchases is merchandise for resale. It is a cost.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Purchases. Merchandise for resale. It is a cost.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Purchases Returns and Allowances is a contra-cost account in the ledger that records the amount of defective or unacceptable merchandise returned to suppliers and/or price reductions given for defective items.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Purchases Returns and Allowances. A contra-cost account in the ledger that records the amount of defective or unacceptable merchandise returned to suppliers and/or price reductions given for defective items.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Purchases Discount is a contra-cost account in the general ledger that records discounts offered by vendors of merchandise for prompt payment of purchases by buyers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Purchases Discount. A contra-cost account in the general ledger that records discounts offered by vendors of merchandise for prompt payment of purchases by buyers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

F.O.B. destination is the agreement that the seller pays or is responsible for the cost of freight to purchaser's location or destination.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

F.O.B. destination. Seller pays or is responsible for the cost of freight to purchaser's location or destination.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

F.O.B. shipping point is the agreement that the purchaser pays or is responsible for the shipping costs from seller's shipping point to purchaser's location.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

F.O.B. shipping point. Purchaser pays or is responsible for the shipping costs from seller's shipping point to purchaser's location.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Purchase requisition is a form used within a business by the requesting department asking the purchasing department of the business to buy specific goods.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Purchase requisition. A form used within a business by the requesting department asking the purchasing department of the business to buy specific goods.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Purchase order is a form used in business to place an order for the buying of goods from a seller.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Purchase order. A form used in business to place an order for the buying of goods from a seller.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Purchase invoice is the seller's sales invoice, which is sent to the purchaser.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Purchase invoice. The seller's sales invoice, which is sent to the purchaser.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Receiving report is a business form used to notify the appropriate people of the ordered goods received along with the quantities and specific condition of the goods.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Receiving report. A business form used to notify the appropriate people of the ordered goods received along with the quantities and specific condition of the goods.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Invoice approval form is a form used by the accounting department in checking the invoice and finally approving it for recording and payment.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Invoice approval form. A form used by the accounting department in checking the invoice and finally approving it for recording and payment.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Accounts payable subsidiary ledger is a book or file that contains, in alphabetical order, the name of the creditor and amount owed from purchases on account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Accounts payable subsidiary ledger. A book or file that contains, in alphabetical order, the name of the creditor and amount owed from purchases on account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Debit memorandum is a memo issued by a purchaser to a seller, indicating that some Purchases Returns and Allowances have occurred and therefore the purchaser now owes less money on account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Debit memorandum. A memo issued by a purchaser to a seller, indicating that some Purchases Returns and Allowances have occurred and therefore the purchaser now owes less money on account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Controlling account is the account in the general ledger that summarizes or controls a subsidiary ledger. Example: The Accounts Payable account in the general ledger is the controlling account for the accounts payable subsidiary ledger. After postings are complete, it shows the total amount owed from purchases made on account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Controlling account. The account in the general ledger that summarizes or controls a subsidiary ledger. Example: The Accounts Payable account in the general ledger is the controlling account for the accounts payable subsidiary ledger. After postings are complete, it shows the total amount owed from purchases made on account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Perpetual inventory system is an inventory system of an organization that keeps a continuous (perpetual) record of each type of inventory by recording units on hand, units sold, cost of goods sold, and the current balance after each sale or purchase.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Perpetual inventory system. An inventory system of an organization that keeps a continuous (perpetual) record of each type of inventory by recording units on hand, units sold, cost of goods sold, and the current balance after each sale or purchase.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

In a perpetual inventory system, Cost of Goods Sold is an account that records the cost of goods sold or the cost of merchandise inventory used to make the sale.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cost of Goods Sold. In a perpetual inventory system, an account that records the cost of goods sold or the cost of merchandise inventory used to make the sale.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Periodic inventory system is an inventory system that counts inventory only at the end of the accounting period. It also calculates the cost of the unsold goods on hand by taking the cost of each unit times the number of units of each product on hand.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Periodic inventory system. An inventory system that counts inventory only at the end of the accounting period. It also calculates the cost of the unsold goods on hand by taking the cost of each unit times the number of units of each product on hand.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Merchandise Inventory is an asset and perpetual inventory system account that records purchases of merchandise. Discounts and returns are recorded in this account for the buyer.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Merchandise Inventory. An asset and perpetual inventory system account that records purchases of merchandise. Discounts and returns are recorded in this account for the buyer.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Cost of goods sold is total cost of the goods which were sold to customers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cost of goods sold. Total cost of the goods which were sold to customers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Beginning merchandise inventory (beginning inventory) is the cost of goods on hand in a company to begin an accounting period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Beginning merchandise inventory (beginning inventory). The cost of goods on hand in a company to begin an accounting period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Ending merchandise inventory (ending inventory) is the cost of goods that remain unsold at the end of the accounting period. It is an asset on the new balance sheet.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Ending merchandise inventory (ending inventory). The cost of goods that remain unsold at the end of the accounting period. It is an asset on the new balance sheet.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Freight-In is a cost of goods sold account that records the shipping cost to the buyer.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Freight-In. A cost of goods sold account that records the shipping cost to the buyer.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Gross profit is net sales less cost of goods sold.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Gross profit. Net sales less cost of goods sold.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Mortgage Payable is a liability account showing amount owed on a mortgage.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Mortgage Payable. A liability account showing amount owed on a mortgage.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Interest Expense is the cost of borrowing money.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Interest Expense. The cost of borrowing money.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Unearned Revenue is a liability account that records amount owed for goods or services in advance of delivery. The Cash account would record the receipt of cash.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Unearned Revenue. A liability account that records amount owed for goods or services in advance of delivery. The Cash account would record the receipt of cash.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Selling expenses are operating expenses directly related to the sale of goods excluding Cost of Goods Sold.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Selling expenses. Operating expenses directly related to the sale of goods excluding Cost of Goods Sold.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Administrative expenses (general expenses) are operating expenses such as general office expenses that are incurred indirectly in the selling of goods.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Administrative expenses (general expenses). Operating expenses such as general office expenses that are incurred indirectly in the selling of goods.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Other income is any revenue other than revenue from sales and service revenue. It appears in a separate section on the income statement. Examples: Rental Income and Storage Fees.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Other income. Any revenue other than revenue from sales and service revenue. It appears in a separate section on the income statement. Examples: Rental Income and Storage Fees.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Other expenses are nonoperating expenses that do not relate to the main operating activities of the business; they appear in a separate section on the income statement. One example given in the text is Interest Expense, interest owed on money borrowed by the company.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Other expenses. Nonoperating expenses that do not relate to the main operating activities of the business; they appear in a separate section on the income statement. One example given in the text is Interest Expense, interest owed on money borrowed by the company.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Classified balance sheet is a balance sheet that categorizes assets as current assets or plant and equipment and groups liabilities as current or long-term liabilities.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Classified balance sheet. A balance sheet that categorizes assets as current assets or plant and equipment and groups liabilities as current or long-term liabilities.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Current assets are assets that can be converted into cash or used within 1 year or the normal operating cycle of the business, whichever is longer.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Current assets. Assets that can be converted into cash or used within 1 year or the normal operating cycle of the business, whichever is longer.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Operating cycle is average time it takes to buy and sell merchandise and then collect accounts receivable.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Operating cycle. Average time it takes to buy and sell merchandise and then collect accounts receivable.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Plant and equipment are long-lived assets such as equipment, buildings, or land that are used in the production or sale of goods or services.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Plant and equipment. Long-lived assets such as equipment, buildings, or land that are used in the production or sale of goods or services.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Current liabilities are obligations that will come due within 1 year or within the operating cycle, whichever is longer.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Current liabilities. Obligations that will come due within 1 year or within the operating cycle, whichever is longer.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Long-term liabilities are obligations that are not due or payable for a long time, usually for more than a year.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Long-term liabilities. Obligations that are not due or payable for a long time, usually for more than a year.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Reversing entries is an optional bookkeeping technique in which certain adjusting entries are reversed or switched on the first day of the new accounting period so that transactions in the new period can be recorded without referring back to prior adjusting entries.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Reversing entries. Optional bookkeeping technique in which certain adjusting entries are reversed or switched on the first day of the new accounting period so that transactions in the new period can be recorded without referring back to prior adjusting entries.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Bad Debts Expense is the operating expense account that estimates the amount of credit sales that will probably not be collectible in a given accounting period when the Allowance method is used. For the direct write-off method, this account would be the actual amount written off.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bad Debts Expense. The operating expense account that estimates the amount of credit sales that will probably not be collectible in a given accounting period when the Allowance method is used. For the direct write-off method, this account would be the actual amount written off.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Allowance for Doubtful Accounts is a contra-asset account that is subtracted from Accounts Receivable. This account accumulates the expected amount of uncollectibles as of a given date.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Allowance for Doubtful Accounts. A contra-asset account that is subtracted from Accounts Receivable. This account accumulates the expected amount of uncollectibles as of a given date.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Net realizable value is the amount (Accounts Receivable - Allowance for Doubtful Accounts) that is expected to be collected.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Net realizable value. The amount (Accounts Receivable - Allowance for Doubtful Accounts) that is expected to be collected.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Income statement approach is a method that estimates the amount of Bad Debts Expense that will result based on a percentage of net credit sales for the period. The amount of the expected bad debts is added to the existing balance of Allowance for Doubtful Accounts.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Income statement approach. A method that estimates the amount of Bad Debts Expense that will result based on a percentage of net credit sales for the period. The amount of the expected bad debts is added to the existing balance of Allowance for Doubtful Accounts.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Balance sheet approach is a method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable amount and the aging process. The adjustment to the Allowance for Doubtful Accounts will bring the new balance of that account to the new required level.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Balance sheet approach. A method used to calculate the amount required in the Allowance for Doubtful Accounts to cover expected uncollectibles. This method is based on the Accounts Receivable amount and the aging process. The adjustment to the Allowance for Doubtful Accounts will bring the new balance of that account to the new required level.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Aging of Accounts Receivable is the procedure of classifying accounts of individual customers by age group, where age is the number of days elapsed from due date.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Aging of Accounts Receivable. The procedure of classifying accounts of individual customers by age group, where age is the number of days elapsed from due date.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Direct write-off method is the method of writing off uncollectibles when they occur and thus does not use the Allowance for Doubtful Accounts. This method does not fulfill the matching principle of accrual accounting.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Direct write-off method. The method of writing off uncollectibles when they occur and thus does not use the Allowance for Doubtful Accounts. This method does not fulfill the matching principle of accrual accounting.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Bad Debts Recovered is when an account receivable has been written off and is recovered, this account, which is in the Other Revenue category, is credited in the direct write-off method if the recovery is in a year following the write-off.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bad Debts Recovered. When an account receivable has been written off and is recovered, this account, which is in the Other Revenue category, is credited in the direct write-off method if the recovery is in a year following the write-off.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Interest is the cost of using money for a period of time.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Interest. The cost of using money for a period of time.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Promissory note is a formal written promise by a borrower to pay a certain sum at a fixed future date.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Promissory note. A formal written promise by a borrower to pay a certain sum at a fixed future date.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Principal is the face amount of the note.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Principal. The face amount of the note.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Payee is one to whom a note is payable.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Payee. One to whom a note is payable.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Maturity date is due date of the promissory note.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Maturity date. Due date of the promissory note.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Maker is one promising to pay a note.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Maker. One promising to pay a note.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Note payable is a promissory note from the maker's point of view.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Note payable. A promissory note from the maker's point of view.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Note receivable is a promissory note from the payee's point of view.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Note receivable. A promissory note from the payee's point of view.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Dishonored note is a note that was not paid at maturity by the maker.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Dishonored note. A note that was not paid at maturity by the maker.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Default is failure of maker to pay the maturity value of a note when due.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Default. Failure of maker to pay the maturity value of a note when due.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Discounting a note is the process or act of transferring the note to a bank before the maturity date.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Discounting a note. The process or act of transferring the note to a bank before the maturity date.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Maturity value is the amount of the note that is due on the date of maturity (Principal + Interest). *Discount period. The amount of time the bank holds a note that was discounted until the maturity date.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Maturity value. The amount of the note that is due on the date of maturity (Principal + Interest). *Discount period. The amount of time the bank holds a note that was discounted until the maturity date.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Bank discount is what the bank charges to hold a note until maturity (Maturity Value - Proceeds).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bank discount. What the bank charges to hold a note until maturity (Maturity Value - Proceeds).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Proceeds. Maturity value of note less bank discount.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Proceeds. Maturity value of note less bank discount.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Contingent liability is liability on the part of one who discounts a note if the maker of the note defaults at maturity date.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Contingent liability. Liability on the part of one who discounts a note if the maker of the note defaults at maturity date.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Discount on Notes Payable is the amount of interest deducted in advance by the lender. This account reduces Notes Payable.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Discount on Notes Payable. The amount of interest deducted in advance by the lender. This account reduces Notes Payable.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Effective interest rate is the true rate of simple interest.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Effective interest rate. The true rate of simple interest.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Specific invoice method is valuing of inventory where each item is identified with a specific invoice.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Specific invoice method. Valuing of inventory where each item is identified with a specific invoice.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

FIFO (first-in, first-out method) is valuing of inventory assuming that the company sells the first goods received in the store.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

FIFO (first-in, first-out method). Valuing of inventory assuming that the company sells the first goods received in the store.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

LIFO (last-in, first-out method) is valuing of inventory with the assumption the last goods received in the store are the first to be sold.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

LIFO (last-in, first-out method). Valuing of inventory with the assumption the last goods received in the store are the first to be sold.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Weighted-average method. Valuing of inventory where each item is assigned the same unit cost. This unit cost is found by dividing the cost of goods available for sale by the total number of units for sale.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Weighted-average method. Valuing of inventory where each item is assigned the same unit cost. This unit cost is found by dividing the cost of goods available for sale by the total number of units for sale.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Consistency is the accounting principle that requires companies to follow the same accounting methods or procedures from period to period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Consistency. The accounting principle that requires companies to follow the same accounting methods or procedures from period to period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Full disclosure principle is the accounting principle that requires companies to fully disclose on their financial reports changes in accounting procedures and methods along with effects of the change as well as justification for change.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Full disclosure principle. The accounting principle that requires companies to fully disclose on their financial reports changes in accounting procedures and methods along with effects of the change as well as justification for change.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Consignment is aales of goods through an agent who has possession but not ownership. Consignor The one who consigns merchandise to the consignee.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Consignment. Sales of goods through an agent who has possession but not ownership. Consignor The one who consigns merchandise to the consignee.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Consignee is a legal entity to which merchandise is consigned but who doesn't have ownership.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Consignee. A company or person to whom merchandise is consigned but who doesn't have ownership.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Retail method is a method used to determine the value of the ending inventory using a cost-toretail ratio. Often used for interim financial reports. *Gross profit method. A method used to determine the value of the ending inventory using a predetermined gross profit rate. This method can be used to determine the value of ending inventory if a loss from fire occurs.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Retail method. A method used to determine the value of the ending inventory using a cost-toretail ratio. Often used for interim financial reports. *Gross profit method. A method used to determine the value of the ending inventory using a predetermined gross profit rate. This method can be used to determine the value of ending inventory if a loss from fire occurs.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Intangible assets are assets having no physical substance (such as patents or franchises).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Intangible assets. Assets having no physical substance (such as patents or franchises).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Land Improvements is an asset account that records improvements made to land; such improvements have a limited life and are subject to depreciation (examples are a driveway or fences).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Land Improvements. An asset account that records improvements made to land; such improvements have a limited life and are subject to depreciation (examples are a driveway or fences).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Residual value (salvage value) is the amount of the asset's cost that will be recovered when the asset is sold, traded in, or scrapped.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Residual value (salvage value). The amount of the asset's cost that will be recovered when the asset is sold, traded in, or scrapped.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Straight-line method is method that allocates an equal amount of depreciation over an asset's period of usefulness.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Straight-line method. Method that allocates an equal amount of depreciation over an asset's period of usefulness.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

At the time an asset is acquired, useful life is an estimate is made of its usefulness in terms of years, output, and so forth.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Useful life. At the time an asset is acquired, an estimate is made of its usefulness in terms of years, output, and so forth.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Units-of-production method is a depreciation method that is based on usage and not on time. An example of units of production is the numbers of shoes a machine could produce in its expected useful life.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Units-of-production method. A depreciation method that is based on usage and not on time. An example of units of production is the numbers of shoes a machine could produce in its expected useful life.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Double declining-balance method is an accelerated depreciation method that uses twice the straight-line rate multiplied by the book value of asset to calculate depreciation expense. Residual value is not subtracted from the cost of an asset in this calculation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Double declining-balance method. An accelerated depreciation method that uses twice the straight-line rate multiplied by the book value of asset to calculate depreciation expense. Residual value is not subtracted from the cost of an asset in this calculation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Accelerated depreciation method is the method that assures that more depreciation taken in the early years of an asset's life, decreasing amounts in later years.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Accelerated depreciation method. More depreciation taken in the early years of an asset's life, decreasing amounts in later years.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Capital expenditure is original cost of an asset as well as additions or enlargements, extraordinary repairs, and betterments.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Capital expenditure. Original cost of an asset as well as additions or enlargements, extraordinary repairs, and betterments.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Additions or enlargements are major changes or improvements that increase the value of an asset (such as adding a new wing to a school).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Additions or enlargements. Major changes or improvements that increase the value of an asset (such as adding a new wing to a school).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Extraordinary repair is infrequent expenditures that extend an asset's life (such as a new engine in a car).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Extraordinary repair. Infrequent expenditures that extend an asset's life (such as a new engine in a car).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Betterments are improvements that increase the efficiency of an asset by adding accessories or replacing parts with more effective and/or powerful ones.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Betterments. Improvements that increase the efficiency of an asset by adding accessories or replacing parts with more effective and/or powerful ones.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Revenue expenditure is payments made for ordinary maintenance of an asset or unnecessary or unreasonable situations.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Revenue expenditure. Payments made for ordinary maintenance of an asset or unnecessary or unreasonable situations.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Trade-in allowance is a value received when one asset is traded in on the purchase of another asset. For example, when you buy a new car you may trade in your old car for an amount of money that is applied toward the purchase of the new car.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Trade-in allowance. A value received when one asset is traded in on the purchase of another asset. For example, when you buy a new car you may trade in your old car for an amount of money that is applied toward the purchase of the new car.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Income tax method is when plant assets are exchanged, tax law says the gain or loss must be absorbed into the cost of the new asset.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Income tax method. When plant assets are exchanged, tax law says the gain or loss must be absorbed into the cost of the new asset.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Depletion is amount of natural resources that has been exhausted by mining, pumping, and so forth for a period of time.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Depletion. Amount of natural resources that has been exhausted by mining, pumping, and so forth for a period of time.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Amortize is to charge a portion of an expenditure over a fixed number of years. Those assets with indefinite lives are not subject to amortization. *Amortization expense. An operating expense on the income statement relating to intangible assets. *Patent. An exclusive right to sell or produce one's discovery or invention. A patent is good for 20 years.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Amortize. To charge a portion of an expenditure over a fixed number of years. Those assets with indefinite lives are not subject to amortization. *Amortization expense. An operating expense on the income statement relating to intangible assets. *Patent. An exclusive right to sell or produce one's discovery or invention. A patent is good for 20 years.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Copyright is the exclusive right that is granted by the federal government to sell and reproduce literary, musical, or artistic works for a period of time.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Copyright. The exclusive right that is granted by the federal government to sell and reproduce literary, musical, or artistic works for a period of time.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Franchise is a right granted by a business or government to produce or sell goods in a specific geographic region. Examples are Burger King and Holiday Inn.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Franchise. A right granted by a business or government to produce or sell goods in a specific geographic region. Examples are Burger King and Holiday Inn.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Goodwill is when a business is purchased, the difference between the price paid and the fair value of the net assets is goodwill. Goodwill may depend on brand names, business location, service, or other elements; it is a valuable asset that plays an important part in the expected rate of future earnings of a business.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Goodwill. When a business is purchased, the difference between the price paid and the fair value of the net assets is goodwill. Goodwill may depend on brand names, business location, service, or other elements; it is a valuable asset that plays an important part in the expected rate of future earnings of a business.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Impairment is value of an intangible asset that decreases and is written off.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Impairment. Value of an intangible asset that decreases and is written off.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Unlimited liability is when partners may be personally liable for debts of the partnership.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Unlimited liability. Partners may be personally liable for debts of the partnership.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Deficit is amount by which net income falls short of salary and interest allowances. Also an abnormal, or debit, balance in a partner's capital account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Deficit. Amount by which net income falls short of salary and interest allowances. Also an abnormal, or debit, balance in a partner's capital account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Liquidation is the process that occurs when a business is terminated, the assets are sold, and liabilities and partners are paid off.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Liquidation. Occurs when a business is terminated, the assets are sold, and liabilities and partners are paid off.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Realization is the conversion of noncash assets into cash in the liquidation process.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Realization. The conversion of noncash assets into cash in the liquidation process.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Statement of cash flows is a financial report that provides a detailed breakdown of the specific increases and decreases in cash during an accounting period. It helps readers of the statement evaluate past performance as well as predict future cash flows of the business.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Statement of cash flows. A financial report that provides a detailed breakdown of the specific increases and decreases in cash during an accounting period. It helps readers of the statement evaluate past performance as well as predict future cash flows of the business.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Comparative balance sheet is a balance sheet listing financial condition for 2 or more years in a side-by-side manner. This format allows the reader to make quick comparisons between the two balance sheet dates. Current and past financial reports covering two or more successive periods that place data in single columns side by side.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Comparative balance sheet. Current and past financial reports covering two or more successive periods that place data in single columns side by side. Current and past financial reports covering two or more successive periods that place data in single columns side by side.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Operating activity is the activity most closely related to conducting the business for which the enterprise was established. Activities such as selling merchandise and services to customers and paying salaries and other expenses needed to continue earning the operating revenue are classified as operating activities.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Operating activity. Those activities most closely related to conducting the business for which the enterprise was established. Activities such as selling merchandise and services to customers and paying salaries and other expenses needed to continue earning the operating revenue are classified as operating activities.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Cash inflow is any increase in cash is called a cash inflow or a source of cash. When listing the total for a major section of the statement of cash flows, if cash is increased, the figure is often described as "cash provided" by operating activities (or by investing activities or financing activities).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cash inflow. Any increase in cash is called a cash inflow or a source of cash. When listing the total for a major section of the statement of cash flows, if cash is increased, the figure is often described as "cash provided" by operating activities (or by investing activities or financing activities).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Cash outflow is a decrease in cash is called a cash outflow or a use of cash. When listing a total for a major section of the statement of cash flows, if cash has decreased, the figure is often described as "cash used" in operating activities (or in investing activities or financing activities). *Investing activities. Activities such as purchase and sale of plant and equipment and placing excess cash in stocks, bonds, and notes of other companies.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cash outflow. A decrease in cash is called a cash outflow or a use of cash. When listing a total for a major section of the statement of cash flows, if cash has decreased, the figure is often described as "cash used" in operating activities (or in investing activities or financing activities). *Investing activities. Activities such as purchase and sale of plant and equipment and placing excess cash in stocks, bonds, and notes of other companies.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Financing activity is any activity relating to raising money from investors and creditors such as the issuance of stocks, bonds, and long-term notes; also, repurchase of outstanding stock and retiring bonds and notes as well as paying dividends.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Financing activities. Activities relating to raising money from investors and creditors such as the issuance of stocks, bonds, and long-term notes; also, repurchase of outstanding stock and retiring bonds and notes as well as paying dividends.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Noncash investing and financing activity is a transaction such as the issuance of stock in exchange for land would be listed in a footnote or a separate schedule to the statement of cash flows, because such transactions would not be reported separately on any other financial statement.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Noncash investing and financing activities. Transactions such as the issuance of stock in exchange for land would be listed in a footnote or a separate schedule to the statement of cash flows, because such transactions would not be reported separately on any other financial statement.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Indirect method is one of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrual basis net income figure from the income statement to the net cash flows from operating activities.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Indirect method. One of two methods of preparing the net cash flow from the operating activities section of the statement of cash flows. Involves converting the accrual basis net income figure from the income statement to the net cash flows from operating activities.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Direct method is one of two methods of preparing the cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Direct method. One of two methods of preparing the cash flow from operating activities section of the statement of cash flows. Each of the major areas of sources and uses of cash for operations is detailed separately.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Horizontal analysis is amounts of items compared on the same line of comparative financial reports. Horizontal analysis can also be in the form of a trend analysis.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Horizontal analysis. Amounts of items compared on the same line of comparative financial reports. Horizontal analysis can also be in the form of a trend analysis.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Vertical analysis is comparing items in a financial report by expressing each item as a percentage of a certain base total.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Vertical analysis. Comparing items in a financial report by expressing each item as a percentage of a certain base total.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Common-size statement is a comparative report in which each item is expressed as a percentage of a base amount without dollar amounts.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Common-size statements. Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Trend analysis is a type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Trend analysis. A type of horizontal analysis that deals with percentage changes in items on the financial reports for several years. This analysis uses a base year to calculate the percentage change of each item.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Ratio is a relationship of two quantities or numbers, one divided by the other.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Ratio. A relationship of two quantities or numbers, one divided by the other.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Ratio analysis is an examination of the relationship between two numbers or sets of numbers on financial reports. Analyses of ratios, especially over time, can give a fairly clear picture of how well a company conducts its business.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Ratio analysis. An examination of the relationship between two numbers or sets of numbers on financial reports. Analyses of ratios, especially over time, can give a fairly clear picture of how well a company conducts its business.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Liquidity ratio is the two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Liquidity ratio. The two ratios—current ratio and acid test ratio—which measure a company’s ability to pay off short-term debts.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Asset management ratio is those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Asset management ratio. Those ratios—accounts receivable turnover, average collection period, inventory turnover, and asset turnover—which measure how effectively a company uses its assets.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Debt management ratio is those ratios—debt to total assets, debt to stockholders' equity, and times interest earned—which measure a company's mix of debt and equity financing.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Debt management ratio. Those ratios—debt to total assets, debt to stockholders' equity, and times interest earned—which measure a company's mix of debt and equity financing.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Profitability ratio is those ratios—gross profit rate, return on sales, return on total assets, and return on common stockholders' equity—which measure a company's ability to earn a profit.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Profitability ratio. Those ratios—gross profit rate, return on sales, return on total assets, and return on common stockholders' equity—which measure a company's ability to earn a profit.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Current ratio is a liquidity ratio; current assets are divided by current liabilities to indicate a company's ability to pay its short-term debt. This ratio does not provide as much certainty as the acid test ratio.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Current ratio. A liquidity ratio; current assets are divided by current liabilities to indicate a company's ability to pay its short-term debt. This ratio does not provide as much certainty as the acid test ratio.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Acid test ratio is a liquidity ratio; those assets that are most easily converted to cash are divided by current liabilities to indicate ability to pay off short-term debt. Also called quick ratio.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Acid test ratio. A liquidity ratio; those assets that are most easily converted to cash are divided by current liabilities to indicate ability to pay off short-term debt. Also called quick ratio.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Quick asset is those assets — mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Quick asset. Those assets — mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Accounts receivable turnover ratio is a ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Accounts receivable turnover ratio. A ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Average collection period is a ratio that shows how quickly moneys owed are received from customers and thereby measures how effectively a company collects its accounts receivable.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Average collection period. A ratio that shows how quickly moneys owed are received from customers and thereby measures how effectively a company collects its accounts receivable.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Inventory turnover ratio is an asset management ratio that indicates how quickly inventory moves off the shelf and therefore how well a company sells its product.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Inventory turnover ratio. An asset management ratio that indicates how quickly inventory moves off the shelf and therefore how well a company sells its product.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Asset turnover ratio is a ratio that indicates how efficiently a company uses its assets to generate sales and thus helps measure the overall efficiency of the company.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Asset turnover ratio. A ratio that indicates how efficiently a company uses its assets to generate sales and thus helps measure the overall efficiency of the company.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Debt to total assets ratio is a ratio that shows how much of a company's assets are financed by creditors.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Debt to total assets ratio. A ratio that shows how much of a company's assets are financed by creditors.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Debt to stockholders' equity ratio is a ratio in which total liabilities are divided by the amount of stock that is owned to measure the risk creditors run in comparison with stockholders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Debt to stockholders' equity ratio. A ratio in which total liabilities are divided by the amount of stock that is owned to measure the risk creditors run in comparison with stockholders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Times interest earned ratio is a debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Times interest earned ratio. A debt management ratio indicating the degree of risk to lenders that a company will default on its interest payments. Also called interest coverage ratio.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Gross profit rate is a profitability ratio that indicates how well net sales cover administrative and selling expenses.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Gross profit rate. A profitability ratio that indicates how well net sales cover administrative and selling expenses.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Return on sales ratio is a profitability ratio that shows the relationship of net income before taxes to net sales and thereby the effectiveness of a company's pricing policy.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Return on sales ratio. A profitability ratio that shows the relationship of net income before taxes to net sales and thereby the effectiveness of a company's pricing policy.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Return on total assets ratio is a profitability ratio that measures how wisely a company has invested in and managed its assets. This ratio can be arrived at in two ways: (1) net income before interest and taxes divided by total assets and (2) return on sales multiplied by asset turnover.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Return on total assets ratio. A profitability ratio that measures how wisely a company has invested in and managed its assets. This ratio can be arrived at in two ways: (1) net income before interest and taxes divided by total assets and (2) return on sales multiplied by asset turnover.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Voucher is a written authorization form containing data about a transaction along with proper authorizations for payment, account distributions, and so forth.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Voucher. A written authorization form containing data about a transaction along with proper authorizations for payment, account distributions, and so forth.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Voucher system is an internal control system designed to control a company's cash payments.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Voucher system. An internal control system designed to control a company's cash payments.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Voucher register is a special journal replacing the purchases journal; it records prenumbered vouchers at the time the liabilities are incurred.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Voucher register. A special journal replacing the purchases journal; it records prenumbered vouchers at the time the liabilities are incurred.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Vouchers Payable is a liability account in the general ledger that represents the controlling account for the sum of individual vouchers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Vouchers Payable. A liability account in the general ledger that represents the controlling account for the sum of individual vouchers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Unpaid voucher file (tickler file) is the file containing unpaid vouchers arranged by due dates to take advantage of cash discounts.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Unpaid voucher file (tickler file). The file containing unpaid vouchers arranged by due dates to take advantage of cash discounts.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Check register is a special journal that replaces the cash payments journal in recording payments of vouchers.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Check register. A special journal that replaces the cash payments journal in recording payments of vouchers.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Paid voucher file is the file that holds paid vouchers filed either in sequential order by voucher number or alphabetically by creditor's name.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Paid voucher file. Holds paid vouchers filed either in sequential order by voucher number or alphabetically by creditor's name.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Profit center is a unit or department that incurs costs and generates revenues.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Profit center. A unit or department that incurs costs and generates revenues.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Cost center is a unit or department that incurs costs but does not generate revenues.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cost center. A unit or department that incurs costs but does not generate revenues.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Direct expenses are expenses that can be traced directly to a specific department.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Direct expenses. Expenses that can be traced directly to a specific department.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Indirect expenses are expenses that cannot be traced directly to one department.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Indirect expenses. Expenses that cannot be traced directly to one department.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Contribution margin is a department's net profit, used to cover indirect expenses.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Contribution margin. A department's net profit, used to cover indirect expenses.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Raw material is material that is to be processed into a finished product or that changes the quality or characteristics of the product.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Raw material. Material that is to be processed into a finished product or that changes the quality or characteristics of the product.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Direct labor is the wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Direct labor. The wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Manufacturing overhead is all the manufacturing costs except raw material and direct labor.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Manufacturing overhead. All the manufacturing costs except raw material and direct labor.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Receiving report is a document prepared by the receiving department to evidence the receipt of material or supplies that had been ordered.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Receiving report. A document prepared by the receiving department to evidence the receipt of material or supplies that had been ordered.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Material requisition is a document used to order material or supplies from the storeroom that provides the basis for charging material into production.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Material requisition. A document used to order material or supplies from the storeroom that provides the basis for charging material into production.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Clock card is a card used by employees when clocking in and out of the factory; it becomes the basis for the payroll.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Clock card. A card used by employees when clocking in and out of the factory; it becomes the basis for the payroll.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Lot ticket is a document prepared to show the movement of materials or products between departments. Also called move ticket.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Lot ticket. A document prepared to show the movement of materials or products between departments. Also called move ticket.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Labor distribution report is a report issued by the payroll department to categorize all the types of labor incurred during the week.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Labor distribution report. A report issued by the payroll department to categorize all the types of labor incurred during the week.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Bill of lading is a formal document issued to the carrier of the finished product. It is the basis for charging the cost of goods sold.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bill of lading. A formal document issued to the carrier of the finished product. It is the basis for charging the cost of goods sold.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Principles of Accounting.

Return on common stockholders' equity ratio is a profitability ratio that indicates how well a company is managing debt financing to earn a profit for holders of common stock.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Return on common stockholders' equity ratio. A profitability ratio that indicates how well a company is managing debt financing to earn a profit for holders of common stock.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Corporation is a business organization that is both a legal and accounting entity.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Corporation. Business organization that is both a legal and accounting entity.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Incorporator is a person responsible for getting the corporation formed.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Incorporator. A person responsible for getting the corporation formed.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Articles of incorporation is the document submitted by incorporators when applying for a charter.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Articles of incorporation. Document submitted by incorporators when applying for a charter.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Charter is a document issued to a corporation by the state that includes certificate of incorporation along with articles of incorporation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Charter. Document issued to a corporation by the state that includes certificate of incorporation along with articles of incorporation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Certificate of incorporation is a document granted by the state authorizing the creation of a corporation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Certificate of incorporation. Document granted by the state authorizing the creation of a corporation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Stockholder is an owner of the stock of the corporation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Stockholder. An owner of the stock of the corporation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Corporate director is an officer elected by stockholders to represent the company and establish policies for the company.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Corporate director. An officer elected by stockholders to represent the company and establish policies for the company.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Minute book is the book that records meetings of the board of directors or stockholders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Minute book. Book that records meetings of the board of directors or stockholders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Limited liability is freedom of stockholders from personal liability for the debts of the corporation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Limited liability. Freedom of stockholders from personal liability for the debts of the corporation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Stock certificate is a formal document issued to investors in a corporation that shows the number of shares purchased.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Stock certificate. Formal document issued to investors in a corporation that shows the number of shares purchased.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Paid-In Capital is a section of stockholders' equity representing what stockholders have invested into the corporation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Paid-In Capital. Section of stockholders' equity representing what stockholders have invested into the corporation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Retained Earnings are accumulated profits of a corporation that have been kept in the business and not paid out as dividends. Retained Earnings is part of stockholders' equity.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Retained Earnings. Accumulated profits of a corporation that have been kept in the business and not paid out as dividends. Retained Earnings is part of stockholders' equity.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Capital stock is classes of stock that represent the fractional elements of ownership of a corporation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Capital stock. Classes of stock that represent the fractional elements of ownership of a corporation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Authorized capital stock is the number of shares of capital stock (common and preferred) that a corporation can sell.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Authorized capital stock. The number of shares of capital stock (common and preferred) that a corporation can sell.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Issued capital stock is stock that the corporation issues for assets or services contributed by the stockholders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Issued capital stock. Stock that the corporation issues for assets or services contributed by the stockholders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Outstanding capital stock is stock that is held and owned by stockholders. Common stock Part of paid-in capital representing the basic ownership equity of the corporation. If the corporation has only one class of stock, it will be common stock.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Outstanding capital stock. Stock that is held and owned by stockholders. Common stock Part of paid-in capital representing the basic ownership equity of the corporation. If the corporation has only one class of stock, it will be common stock.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Preemptive right is the right of the stockholder to purchase additional shares of stock to maintain a proportionate interest when the corporation issues additional stock.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Preemptive right. The right of the stockholder to purchase additional shares of stock to maintain a proportionate interest when the corporation issues additional stock.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Preferred stock is class of capital stock that has preference to a corporation's profits and assets.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Preferred stock. Class of capital stock that has preference to a corporation's profits and assets.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Dividend is cash, other assets, or shares of stock that a corporation issues to the stockholders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Dividend. Cash, other assets, or shares of stock that a corporation issues to the stockholders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Cumulative preferred stock is stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Cumulative preferred stock. Stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Dividends in arrears are the dividends owed to cumulative preferred stockholders that must be paid before common stockholders can receive their dividends.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Dividends in arrears. Dividends owed to cumulative preferred stockholders that must be paid before common stockholders can receive their dividends.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Noncumulative preferred stock is preferred stock that does not entitle its holders to a dividend for any year in which a dividend is not declared. *Nonparticipating preferred stock. Preferred stock that entitles its holders only to a certain percentage of dividend, the remainder going to holders of common stock.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Noncumulative preferred stock. Preferred stock that does not entitle its holders to a dividend for any year in which a dividend is not declared. *Nonparticipating preferred stock. Preferred stock that entitles its holders only to a certain percentage of dividend, the remainder going to holders of common stock.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Participating preferred stock is stock that entitles its holders not only to a fixed dividend but also to an opportunity to share in additional dividends with common stockholders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Participating preferred stock. Stock that entitles its holders not only to a fixed dividend but also to an opportunity to share in additional dividends with common stockholders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Par value is an arbitrary value that is placed on each share of stock. Par value represents legal capital and not market value.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Par value. An arbitrary value that is placed on each share of stock. Par value represents legal capital and not market value.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Legal capital is minimum amount of capital that a corporation must leave in the company (cannot be withdrawn by stockholders) for the protection of the creditors.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Legal capital. Minimum amount of capital that a corporation must leave in the company (cannot be withdrawn by stockholders) for the protection of the creditors.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

No-par stock is stock with no par value. A stated value could be placed on it.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

No-par stock. Stock with no par value. A stated value could be placed on it.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Stated value is arbitrary value placed by the board of directors on each share of no-par stock to fulfill legal capital requirements.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Stated value. Arbitrary value placed by the board of directors on each share of no-par stock to fulfill legal capital requirements.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Premium is a term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par Value to record the premium received.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Premium. A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par Value to record the premium received.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Common Paid-In Capital in Excess of Par Value is the difference between what stockholders invest and par value. This amount is not credited to the Common Stock account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Common Paid-In Capital in Excess of Par Value. Difference between what stockholders invest and par value. This amount is not credited to the Common Stock account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Discount on stock is the difference between the par value of the stock and an amount less than the par value that the stockholders have contributed. Discounts do not happen often.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Discount on stock. The difference between the par value of the stock and an amount less than the par value that the stockholders have contributed. Discounts do not happen often.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Common Paid-In Capital in Excess of Stated Value is the difference between what stockholders invest and the stated value placed on stock by the board of directors. This amount is not credited to the Common Stock account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Common Paid-In Capital in Excess of Stated Value. Difference between what stockholders invest and the stated value placed on stock by the board of directors. This amount is not credited to the Common Stock account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Organization cost is an intangible asset that records the initial cost of forming the corporation, such as legal and incorporating fees. Today, it is being expensed.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Organization cost. An intangible asset that records the initial cost of forming the corporation, such as legal and incorporating fees. Today, it is being expensed.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Stock subscription is a contractual agreement to buy a certain number of shares of stock from a corporation at a specific price.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Stock subscription. A contractual agreement to buy a certain number of shares of stock from a corporation at a specific price.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Common Stock Subscribed is a temporary stockholders’ equity account that records at par value stock that has been subscribed to but not fully paid for.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Common Stock Subscribed. Temporary stockholders’ equity account that records at par value stock that has been subscribed to but not fully paid for.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Common Stock Subscriptions Receivable is current asset on balance sheet that represents amount due on stock subscriptions.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Common Stock Subscriptions Receivable. Current asset on balance sheet that represents amount due on stock subscriptions.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Source-of-capital approach is method of preparing Paid-In Capital by listing classes of stockholder sources of capital. Legal capital approach Method of preparing Paid-In Capital by listing the legal section first.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Source-of-capital approach. Method of preparing Paid-In Capital by listing classes of stockholder sources of capital. Legal capital approach Method of preparing Paid-In Capital by listing the legal section first.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Redemption value is the price per share a corporation pays to redeem or retire capital stock.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Redemption value. The price per share a corporation pays to redeem or retire capital stock.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Market value is the price that a buyer pays to purchase shares of capital stock in the open market. Of course, for every buyer there is a seller.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Market value. The price that a buyer pays to purchase shares of capital stock in the open market. Of course, for every buyer there is a seller.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Book value per share is amount of net assets that a stockholder would receive on a per share basis, assuming no gain or loss on the sale of the assets.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Book value per share. Amount of net assets that a stockholder would receive on a per share basis, assuming no gain or loss on the sale of the assets.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Dividend is cash or other assets that a corporation distributes as earnings to stockholders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Dividend. Cash or other assets that a corporation distributes as earnings to stockholders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Date of declaration is the date upon which the board of directors of a corporation formally declares a dividend.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Date of declaration. The date upon which the board of directors of a corporation formally declares a dividend.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Dividend is payable liability showing amount of cash dividend owed.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Dividend. Payable Liability showing amount of cash dividend owed.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Date of record is the date of ownership that determines which stockholders will receive the dividend.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Date of record. The date of ownership that determines which stockholders will receive the dividend.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Date of payment is the date the dividend is paid. *Cash dividend. Dividend that is paid in cash.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Date of payment. The date the dividend is paid. *Cash dividend. Dividend that is paid in cash.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Stock dividend is stock that is distributed to stockholders instead of cash or other assets.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Stock dividend. Stock that is distributed to stockholders instead of cash or other assets.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Common Stock Dividend is distributable Stockholders' equity account that accumulates a stock dividend that has been declared but not yet issued and distributed.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Common Stock Dividend. Distributable Stockholders' equity account that accumulates a stock dividend that has been declared but not yet issued and distributed.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Stock split is issuing of additional shares of stock to stockholders; total par or stated value remains the same.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Stock split. Issuing of additional shares of stock to stockholders; total par or stated value remains the same.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Treasury stock is stock that has been issued but has been bought back by the corporation or received as a gift.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Treasury stock. Stock that has been issued but has been bought back by the corporation or received as a gift.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Paid-In Capital from Treasury Stock is stockholders' equity account that records amounts more or less than par value of treasury stock sold. The balance of this account can never be negative.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Paid-In Capital from Treasury Stock. Stockholders' equity account that records amounts more or less than par value of treasury stock sold. The balance of this account can never be negative.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Appropriated retained earnings (restricted retained earnings) is that portion of Retained Earnings that is not available for dividends.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Appropriated retained earnings (restricted retained earnings). That portion of Retained Earnings that is not available for dividends.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Statement of retained earnings is a financial report that reveals the changes in retained earnings for a particular period of time.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Statement of retained earnings. A financial report that reveals the changes in retained earnings for a particular period of time.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Prior period adjustment is correction made in the current year of a mistake made in previous years. The adjustment is updated on the statement of retained earnings.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Prior period adjustment. Correction made in the current year of a mistake made in previous years. The adjustment is updated on the statement of retained earnings.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Bond is an interest-bearing note payable usually in $1,000 denominations issued by a corporation to a large group of lenders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bond. An interest-bearing note payable usually in $1,000 denominations issued by a corporation to a large group of lenders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Bond certificate is a piece of paper held by a bondholder showing evidence of a bond issued by a corporation to be payable on a specified date for a specific sum to the order of the person named in the bond certificate or to the bearer.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bond certificate. A piece of paper held by a bondholder showing evidence of a bond issued by a corporation to be payable on a specified date for a specific sum to the order of the person named in the bond certificate or to the bearer.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Face value is the amount the corporation must repay to the bondholder at the maturity date.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Face value. The amount the corporation must repay to the bondholder at the maturity date.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Contract rate is rate of interest (based on face value) stated on bond certificate and bond indenture.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Contract rate. Rate of interest (based on face value) stated on bond certificate and bond indenture.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Bond indenture is a contract that spells out the provisions of the contract between the corporation and bondholder.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bond indenture. A contract that spells out the provisions of the contract between the corporation and bondholder.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Trustee is an organization (usually a bank) or person who monitors a bond indenture for the protection of bondholders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Trustee. Organization (usually a bank) or person who monitors a bond indenture for the protection of bondholders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Secured bond is bond issued by a corporation that pledges specific assets as security to meet the terms of the bond agreement.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Secured bond. Bond issued by a corporation that pledges specific assets as security to meet the terms of the bond agreement.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Debenture bond is bond that is unsecured and is issued only on the general credit of a corporation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Debenture bond. Bond that is unsecured and is issued only on the general credit of a corporation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Serial bond is bond issued in a series, each one of which has a different maturity date and thus comes due at a different time.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Serial bond. Bond issued in a series, each one of which has a different maturity date and thus comes due at a different time.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Registered bond is bondholders of record are registered with the corporation, and interest checks are sent directly to them.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Registered bond. Bondholders of record are registered with the corporation, and interest checks are sent directly to them.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Callable bond is bond with a provision that it can be called in by the issuing corporation after a certain date.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Callable bond. Bond with a provision that it can be called in by the issuing corporation after a certain date.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Convertible bond is bondholders have the option of converting bonds into stock at a specified exchange rate.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Convertible bond. Bondholders have the option of converting bonds into stock at a specified exchange rate.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Effective rate is the real or actual rate of interest to the borrowing corporation.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Effective rate. The real or actual rate of interest to the borrowing corporation.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Carrying value (book value) is face value of bond less bond discount or plus bond premium.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Carrying value (book value). Face value of bond less bond discount or plus bond premium.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Discount on Bonds Payable is the account used when bonds are issued below face value; indicates market rate of interest is higher than contract rate. This account is a contra-liability account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Discount on Bonds Payable. Account used when bonds are issued below face value; indicates market rate of interest is higher than contract rate. This account is a contra-liability account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Amortization of discount on Bonds Payable (amortization of premium on Bonds Payable) is writing off the bond premium or discount as a decrease or increase to interest expense for each interest period.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Amortization of discount on Bonds Payable (amortization of premium on Bonds Payable). Writing off the bond premium or discount as a decrease or increase to interest expense for each interest period.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Straight-line method is a method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Straight-line method. A method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Premium on Bonds Payable is the account used when bonds are issued above face value; it indicates that market interest rate is below contract rate. This account is a liability account.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Premium on Bonds Payable. Account used when bonds are issued above face value; it indicates that market interest rate is below contract rate. This account is a liability account.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Interest method of amortization. The method that amortizes the premium or discount to record interest expense, being equal to the carrying value of the bond times the market rate times the time period. The interest expense is a constant percentage of the carrying value. The discount or premium to be amortized is the difference between the interest to be recorded and the interest paid to bondholders.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Interest method of amortization. This method amortizes the premium or discount to record interest expense, being equal to the carrying value of the bond times the market rate times the time period. The interest expense is a constant percentage of the carrying value. The discount or premium to be amortized is the difference between the interest to be recorded and the interest paid to bondholders.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Sinking fund is a fund that accumulates cash to pay off bonds when they are retired.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Sinking fund. A fund that accumulates cash to pay off bonds when they are retired.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Bond Sinking Fund Interest Earned is other revenue account used to record earnings on sinking fund balance.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bond Sinking Fund Interest Earned. Other revenue account used to record earnings on sinking fund balance.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Corporate Accounting.

Fair Labor Standards Act (Federal Wage and Hour Law) is a United States law that the majority of American employers must follow that contains rules stating the minimum hourly rate of pay and the maximum number of hours a worker will work before being paid time and a half for overtime hours worked. This law also has other rules and regulations that employers must follow for payroll purposes.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Fair Labor Standards Act (Federal Wage and Hour Law). A United States law that the majority of American employers must follow that contains rules stating the minimum hourly rate of pay and the maximum number of hours a worker will work before being paid time and a half for overtime hours worked. This law also has other rules and regulations that employers must follow for payroll purposes.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Interstate commerce is a test that is applied to determine whether an employer must follow the rules of the Fair Labor Standards Act. If an employer communicates or does business with another business in some other state, it is usually considered to be involved in interstate commerce.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Interstate commerce. A test that is applied to determine whether an employer must follow the rules of the Fair Labor Standards Act. If an employer communicates or does business with another business in some other state, it is usually considered to be involved in interstate commerce.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Form W-4 (Employee's Withholding Allowance Certificate) is a form filled out by employees and used by employers to supply needed information about the number of allowances claimed, marital status, and so forth. The form is used for payroll purposes to determine federal income tax withholding from an employee's paycheck.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form W-4 (Employee's Withholding Allowance Certificate). A form filled out by employees and used by employers to supply needed information about the number of allowances claimed, marital status, and so forth. The form is used for payroll purposes to determine federal income tax withholding from an employee's paycheck.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Federal income tax withholding (FIT withholding) is amount of federal income tax withheld by the employer from the employee's gross pay; the amount withheld is determined by the employee's gross pay, the pay period, the number of allowances claimed by the employee on the W-4 form, and the marital status indicated on the W-4 form.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Federal income tax withholding (FIT withholding). Amount of federal income tax withheld by the employer from the employee's gross pay; the amount withheld is determined by the employee's gross pay, the pay period, the number of allowances claimed by the employee on the W-4 form, and the marital status indicated on the W-4 form.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Allowances (also known as exemptions) are certain dollar amounts of a person's income tax that will be considered nontaxable for income tax withholding purposes.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Allowances (also known as exemptions). Certain dollar amounts of a person's income tax that will be considered nontaxable for income tax withholding purposes.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Wage bracket table is one of various charts in IRS Circular E that provide information about deductions for federal income tax based on earnings and data supplied on the W-4 form.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Wage bracket table. One of various charts in IRS Circular E that provide information about deductions for federal income tax based on earnings and data supplied on the W-4 form.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

IRS Circular E (Circular E) is an IRS tax publication of payroll procedures, including tax tables.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

IRS Circular E (Circular E). An IRS tax publication of payroll procedures, including tax tables.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

State income tax withholding is amount of state income tax withheld by the employer from the employee's gross pay.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

State income tax withholding. Amount of state income tax withheld by the employer from the employee's gross pay.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

FICA (Federal Insurance Contributions Act) is part of the Social Security Act of 1935, this law taxes both the employer and employee up to a certain maximum rate and wage base for OASDI tax purposes. It also taxes both the employer and employee for Medicare purposes, but this tax has no wage base maximum.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

FICA (Federal Insurance Contributions Act). Part of the Social Security Act of 1935, this law taxes both the employer and employee up to a certain maximum rate and wage base for OASDI tax purposes. It also taxes both the employer and employee for Medicare purposes, but this tax has no wage base maximum.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Taxable earnings is a numerical value that shows amount of earnings subject to a tax. The tax itself is not shown.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Taxable earnings. A numerical value that shows amount of earnings subject to a tax. The tax itself is not shown.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Medical insurance is health care insurance for which premiums may be paid through a deduction from an employee's paycheck.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Medical insurance. Health care insurance for which premiums may be paid through a deduction from an employee's paycheck.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Federal Unemployment Tax Act (FUTA) is a tax paid by employers to the federal government. The current rate is 0.6% on the first $7,000 of earnings of each employee after the normal FUTA tax credit is applied.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Federal Unemployment Tax Act (FUTA). A tax paid by employers to the federal government. The current rate is 0.6% on the first $7,000 of earnings of each employee after the normal FUTA tax credit is applied.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

State Unemployment Tax Act (SUTA) is a tax usually paid only by employers to the state for employee unemployment insurance.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

State Unemployment Tax Act (SUTA). A tax usually paid only by employers to the state for employee unemployment insurance.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Workers' compensation insurance is insurance purchased by most employers to protect their employees against losses due to injury or death while on the job.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Workers' compensation insurance. Insurance purchased by most employers to protect their employees against losses due to injury or death while on the job.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Payroll tax expense is the cost to employers that includes the total of the employer's FICA OASDI, FICA Medicare, FUTA, and SUTA taxes. Remember, the employer matches the employee contributions for OASDI and Medicare.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Payroll tax expense. The cost to employers that includes the total of the employer's FICA OASDI, FICA Medicare, FUTA, and SUTA taxes. Remember, the employer matches the employee contributions for OASDI and Medicare.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Employer identification number (EIN) is a number assigned by the IRS that is used by an employer when recording and paying payroll and income taxes.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Employer identification number (EIN). A number assigned by the IRS that is used by an employer when recording and paying payroll and income taxes.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Form SS-4 is the form filled out by an employer to get an EIN. The form is sent to the IRS, which assigns the number to the business.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form SS-4. The form filled out by an employer to get an EIN. The form is sent to the IRS, which assigns the number to the business.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Form 941 tax is another term used to describe FIT, OASDI, and Medicare. This name comes from the form used to report these taxes.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form 941 tax. Another term used to describe FIT, OASDI, and Medicare. This name comes from the form used to report these taxes.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Look-back period is a period of time used to determine whether a business should make its Form 941 tax deposits on a monthly or semiweekly basis. The IRS defines this period as July 1 through June 30 of the year prior to the year in which Form 941 tax deposits will be made.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Look-back period. A period of time used to determine whether a business should make its Form 941 tax deposits on a monthly or semiweekly basis. The IRS defines this period as July 1 through June 30 of the year prior to the year in which Form 941 tax deposits will be made.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Monthly depositor is a business classified as a monthly depositor will make its payroll tax deposits only once each month for the amount of Form 941 taxes due from the prior month.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Monthly depositor. A business classified as a monthly depositor will make its payroll tax deposits only once each month for the amount of Form 941 taxes due from the prior month.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Semiweekly depositor is a business classified as a semiweekly depositor may have to make its payroll tax deposits up to twice in one week, depending on when payroll is paid.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Semiweekly depositor. A business classified as a semiweekly depositor may have to make its payroll tax deposits up to twice in one week, depending on when payroll is paid.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Form 941 (Employer's Quarterly Federal Tax Return) is a tax report that a business will complete after the end of each calendar quarter indicating the total FICA (OASDI and Medicare) taxes owed plus the amount of FIT withheld from employees' pay for the quarter. If federal tax deposits have been made correctly and on time, the total amount deposited should equal the amount due on Form 941. Any difference results in a payment due or a refund.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form 941 (Employer's Quarterly Federal Tax Return). A tax report that a business will complete after the end of each calendar quarter indicating the total FICA (OASDI and Medicare) taxes owed plus the amount of FIT withheld from employees' pay for the quarter. If federal tax deposits have been made correctly and on time, the total amount deposited should equal the amount due on Form 941. Any difference results in a payment due or a refund.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Form 940 (Employer's Annual Federal Unemployment Tax Return) is the form that is used by employers at the end of the calendar year to report the amount of unemployment tax due for the year. If more than $500 is cumulatively owed at the end of a quarter, it should be paid one month after the end of that quarter. Normally, the report is due January 31 after the calendar year, or February 10 if an employer has already made all deposits.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form 940 (Employer's Annual Federal Unemployment Tax Return). This form is used by employers at the end of the calendar year to report the amount of unemployment tax due for the year. If more than $500 is cumulatively owed at the end of a quarter, it should be paid one month after the end of that quarter. Normally, the report is due January 31 after the calendar year, or February 10 if an employer has already made all deposits.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Form W-2 (Wage and Tax Statement) is a form completed by the employer at the end of the calendar year to provide a summary of gross earnings and deductions to each employee. At least three copies go to the employee, one copy to the IRS, one copy to any state where employee income taxes have been withheld, one copy to the Social Security Administration, and one copy into the records of the business.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form W-2 (Wage and Tax Statement). A form completed by the employer at the end of the calendar year to provide a summary of gross earnings and deductions to each employee. At least three copies go to the employee, one copy to the IRS, one copy to any state where employee income taxes have been withheld, one copy to the Social Security Administration, and one copy into the records of the business.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Form W-3 (Transmittal of Wage and Tax Statements) is a form completed by the employer to verify the number of W-2s and amounts withheld as shown on them. This form is sent to the Social Security Administration data processing center along with copies of each employee's W-2 forms.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Form W-3 (Transmittal of Wage and Tax Statements). A form completed by the employer to verify the number of W-2s and amounts withheld as shown on them. This form is sent to the Social Security Administration data processing center along with copies of each employee's W-2 forms.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Modified Accelerated Cost Recovery System (MACRS) is a system for businesses to calculate depreciation for tax purposes based on the Tax Laws of 1986, 1989, and 2010; also known as the General Depreciation System (GDS).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Modified Accelerated Cost Recovery System (MACRS). A system for businesses to calculate depreciation for tax purposes based on the Tax Laws of 1986, 1989, and 2010; also known as the General Depreciation System (GDS).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Uniform Partnership Act is laws enacted in most states that govern how a partnership is formed, operated, and liquidated.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Uniform Partnership Act. Laws enacted in most states that govern how a partnership is formed, operated, and liquidated.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• American Accounting.

Partnership is the association of two or more persons who act as co-owners of a business.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Partnership. The association of two or more persons who act as co-owners of a business.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Articles of partnership. The written contract that spells out the details of the agreement among the partners.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Articles of partnership. The written contract that spells out the details of the agreement among the partners.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Limited life is a requirement that a partnership is dissolved by admission, withdrawal, or death of a partner. Although the partnership is dissolved, the operations of the business can continue if a new partnership is formed.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Limited life. Partnership is dissolved by admission, withdrawal, or death of a partner. Although the partnership is dissolved, the operations of the business can continue if a new partnership is formed.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Mutual agency is act of a single partner is binding on all members of the partnership.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Mutual agency. Act of a single partner is binding on all members of the partnership.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

General partner is a partner who has unlimited liability.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

General partner. A partner who has unlimited liability.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Limited partner is the partner's liability is limited to the amount of investment in the partnership.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Limited partner. The partner's liability is limited to the amount of investment in the partnership.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Co-ownership of property is each partner owns a share of the assets.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Co-ownership of property. Each partner owns a share of the assets.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Salary allowance is a mechanism for dividing earnings of a partnership based on personal services provided by the partners (not an expense).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Salary allowance. A mechanism for dividing earnings of a partnership based on personal services provided by the partners (not an expense).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Interest allowance is a mechanism for dividing earnings of a partnership based on a percentage of capital balances of the partners (not an expense).

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Interest allowance. A mechanism for dividing earnings of a partnership based on a percentage of capital balances of the partners (not an expense).

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Profit and loss ratio is an agreed-upon ratio used to divide earnings or losses of a partnership.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Profit and loss ratio. An agreed-upon ratio used to divide earnings or losses of a partnership.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Statement of partners' equity is a financial statement that reveals each partner's ownership percentage of the firm's capital. The ending figure for the firm's capital is then placed on the balance sheet.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Statement of partners' equity. A financial statement that reveals each partner's ownership percentage of the firm's capital. The ending figure for the firm's capital is then placed on the balance sheet.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Purchase of an equity interest is transfer of ownership between an existing partner and a new partner.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Purchase of an equity interest. Transfer of ownership between an existing partner and a new partner.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.

Bonus is when a new partner is admitted, he or she may pay more or less than equity interest. If the new partner pays more, the old partners share a bonus in the profit and loss ratio. Of course, the opposite could result, and the new partner could receive a bonus if he or she invests less than equity interest.

Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Bonus. When a new partner is admitted, he or she may pay more or less than equity interest. If the new partner pays more, the old partners share a bonus in the profit and loss ratio. Of course, the opposite could result, and the new partner could receive a bonus if he or she invests less than equity interest.

Related concepts

Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.

Related coursework

• Partnership Accounting.